Core Insights - Brookdale Senior Living Inc. plans to release its fourth quarter and full-year 2024 financial results on February 18, 2025, after market close [1] - A conference call to discuss the results is scheduled for February 19, 2025, at 9:00 a.m. (ET) [2] - Brookdale operates 647 senior living communities across 41 states, serving approximately 58,000 residents as of December 31, 2024 [3] Financial Results Announcement - The financial results will be released after market close on February 18, 2025 [1] - A conference call will be held on February 19, 2025, at 9:00 a.m. (ET) to discuss the results [2] Company Overview - Brookdale Senior Living is the premier operator of senior living communities in the U.S. [3] - The company offers various living arrangements, including independent living, assisted living, memory care, and continuing care retirement communities [3] - Brookdale emphasizes its commitment to enriching the lives of seniors through compassionate care and exceptional service [3]

Company Overview - Brookdale Senior Living Inc. is the leading operator of senior living communities in the United States, focusing on enriching the lives of seniors with compassion, respect, excellence, and integrity [1] - The company operates independent living, assisted living, memory care, and continuing care retirement communities, managing 647 communities across 41 states as of December 31, 2024, serving approximately 58,000 residents [1] Occupancy and Performance Metrics - December 2024 weighted average occupancy increased by 100 basis points year-over-year, rising from 78.3% in 2023 to 79.3% in 2024 [3] - Fourth quarter 2024 weighted average occupancy also saw a 100 basis point increase compared to the same quarter in the previous year [3] - Sequentially, fourth quarter 2024 weighted average occupancy rose by 50 basis points compared to the third quarter, surpassing normal pre-pandemic seasonality for this period [3] - Fourth quarter 2024 move-in volume exceeded the prior year and was 8% above the pre-pandemic average for this period [3]

Core Viewpoint - Brookdale Senior Living Inc. has successfully completed an advance refinancing of over $300 million of its 2027 debt maturities, enhancing its liquidity in the process [1][2]. Financing Details - On December 20, 2024, Brookdale secured a loan of $344.2 million under its Master Credit Facility Agreement, which was utilized to repay $312.5 million of variable rate debt due in September 2027 [2][4]. - The new debt is secured by non-recourse first priority mortgages on 47 communities, which also secure approximately $435 million of additional outstanding mortgages [3][4]. - The loan carries a fixed interest rate of 6.14%, is interest-only for the first two years, and matures in January 2032 [4]. Management Commentary - The Executive Vice President and Chief Financial Officer of Brookdale expressed satisfaction with the refinancing transaction, highlighting its proactive management of the balance sheet and the favorable rate achieved [5]. Company Overview - Brookdale Senior Living Inc. is a leading operator of senior living communities in the United States, committed to enriching the lives of seniors through various living arrangements, including independent living, assisted living, memory care, and continuing care retirement communities [5]. - As of September 30, 2024, the company operates 648 communities across 41 states, serving approximately 58,000 residents [5].

Core Viewpoint - Brookdale Senior Living Inc. (BKD) experienced a significant decline in share price, losing 17.5% since the release of its third-quarter 2024 results, primarily due to increased marketing expenses, reduced property insurance proceeds, and a drop in interest income, leading to a wider net loss [1] Financial Performance - BKD reported an adjusted loss of 22 cents per share for Q3, which was worse than the Zacks Consensus Estimate of a 16-cent loss, remaining flat year over year [2] - Total revenues and other operating income increased by 3.5% year over year to $784.2 million, driven by higher resident and management fee revenues [2] - Resident fees rose to $743.7 million, a 3.7% increase year over year, supported by improved revenue per occupied unit (RevPOR) and occupancy rates [3] - Management fees grew by 4.3% year over year to $2.7 million [3] Key Metrics - RevPOR increased by 4.3% year over year due to annual rate increases, while weighted average occupancy improved by 130 basis points to 78.9% [4] - Facility operating expenses rose by 2% year over year to $548.3 million, influenced by inflation and marketing costs, although partially offset by divestitures and reduced contract labor costs [5] - Interest income fell by 26.3% year over year to $4.7 million, contributing to a net loss of $50.7 million, which was wider than the previous year's loss of $48.8 million [6] - Adjusted EBITDA was reported at $92.2 million, reflecting a 15% year-over-year increase [6] Financial Position - As of September 30, 2024, BKD had cash and cash equivalents of $254.7 million, down 8.4% from the end of 2023 [7] - Total assets increased by 6.6% to $5.9 billion, while long-term debt slightly decreased to $3.7 billion [7] - Total equity fell by 27.4% from the end of 2023 to $294.3 million [8] - Net cash generated from operations surged by 45.2% year over year to $66.5 million, although adjusted free cash outflow increased more than five-fold to $13.9 million [8] Outlook - Management anticipates a year-over-year growth in RevPAR for Q4 2024 in the range of 5-5.5% and expects adjusted EBITDA to be between $93 million and $98 million [9] - Cash facility operating lease payments are projected to be around $56 million for Q4, with non-development capital expenditures estimated at approximately $180 million for 2024 [10]

Core Points - Brookdale Senior Living Inc. will participate in the 2024 Stephens Annual Investment Conference on November 20, 2024, with CEO Lucinda "Cindy" Baier and CFO Dawn Kussow presenting [1] - The fireside chat will start at 8:00 am CST, and a live webcast will be available on the company's website, with a replay accessible until January 31, 2025 [2] Company Overview - Brookdale Senior Living Inc. is the leading operator of senior living communities in the United States, focusing on enriching the lives of seniors with compassion, respect, excellence, and integrity [3] - The company operates 648 communities across 41 states as of September 30, 2024, with the capacity to serve approximately 58,000 residents [3] - Brookdale offers various living options, including independent living, assisted living, memory care, and continuing care retirement communities, emphasizing healthcare, hospitality, and real estate expertise [3]

Financial Data and Key Metrics Changes - In Q3 2024, adjusted EBITDA grew 15% year-over-year to $92.2 million, which is roughly the midpoint of the previously provided guidance range [11][44] - Adjusted free cash flow for the third quarter was $14 million, an increase of $11 million compared to the prior year [48] - RevPAR increased by 5.9% over the prior year, with same-community RevPAR growing 5.6% [11][38] Business Line Data and Key Metrics Changes - The number of communities operating with the Brookdale HealthPlus program more than doubled, leading to improved clinical outcomes [8][21] - Same-community RevPOR grew 4.2%, which was an acceleration from the second quarter [16][39] - Labor expense as a percentage of revenue improved by 140 basis points compared to the prior year [40] Market Data and Key Metrics Changes - The company experienced a sequential occupancy growth of 80 basis points, which was better than historical seasonal trends [7][37] - Move-ins improved from the second quarter but remained below the prior year, primarily due to softness from two large paid third-party referral sources [12][70] - The industry experienced a sequential deceleration in average asking rent growth, while Brookdale's RevPOR growth accelerated [16][39] Company Strategy and Development Direction - The company is focused on returning to pre-pandemic occupancy levels while maintaining profitable occupancy growth [15][30] - Brookdale plans to acquire 41 communities to enhance cash flow and reduce exposure to escalating lease costs [24][26] - The strategic priorities for 2025 include maximizing occupancy, retaining top associates, and ensuring high-quality care [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future occupancy and adjusted EBITDA growth, despite challenges from third-party referral sources [18][34] - The company is committed to managing expenses while meeting resident needs and maintaining regulatory compliance [32][41] - Management noted that the competitive landscape has seen increased discounting, potentially influenced by external factors such as the presidential election [91] Other Important Information - The company successfully refinanced the majority of its debt maturities without extension options through 2026 [10][57] - Brookdale HealthPlus has shown significant clinical outcomes, including 80% fewer emergency room visits and 66% fewer hospitalizations compared to seniors living at home [21][99] - The company expects to close the acquisition transactions by year-end, which will be immediately accretive to adjusted free cash flow [54][55] Q&A Session Summary Question: Can you walk us through the income statement regarding the lease reclassification and its impact on 2025? - Management confirmed that the $8 million benefit to adjusted EBITDA in Q4 is a timing difference, with a corresponding increase in interest expense expected in 2025 [66][67] Question: What is the strategy regarding the pressured third-party referral sources? - Management clarified that the decline in move-ins from third-party sources is not cost-related and that they are implementing internal marketing strategies to offset this decline [70][74] Question: How should we interpret the RevPAR guidance and the competitive pricing environment? - Management indicated that while RevPAR is expected to grow, they anticipate a sequential decline in RevPOR due to changes in resident acuity [75][76] Question: What are the expectations for occupancy growth in Q4? - Management expects occupancy to increase sequentially, aligning with year-to-date RevPOR growth [84][85] Question: Can you elaborate on the impact of the Google algorithm change on third-party referrals? - Management noted that a recent Google algorithm change has negatively affected lead generation for one of the major third-party referral sources [87][88]

Company Operations - As of September 30, 2024, the company operates 648 senior living communities across 41 states, serving approximately 58,000 residents[111]. - The number of communities decreased by 22 to 619, representing a 3.4% decline compared to the prior year[129]. - The company operates 277 communities under long-term leases, with a total of 19,860 units[218]. Financial Performance - Resident fees for the three months ended September 30, 2024, increased by $26.6 million (3.7%) to $743.7 million compared to $717.1 million in the same period of 2023[122]. - Adjusted EBITDA for the same period rose by $12.0 million (15.0%) to $92.2 million from $80.2 million year-over-year[122]. - The company has experienced a net loss of $50.7 million for the three months ended September 30, 2024, compared to a net loss of $48.8 million in the same period of 2023[122]. - Net income for the three months ended September 30, 2024, was a loss of $50,734 thousand, compared to a loss of $48,811 thousand for the same period in 2023[231]. - Adjusted EBITDA for the three months ended September 30, 2024, was $92,237 thousand, an increase from $80,220 thousand in the same period of 2023[231]. - Adjusted Free Cash Flow for the three months ended September 30, 2024, was $13,853 thousand, significantly up from $2,544 thousand in the same period of 2023[236]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $66,455 thousand, compared to $45,763 thousand for the same period in 2023[236]. Revenue and Occupancy - The increase in resident fees was driven by a 5.6% rise in same community RevPAR, which included a 4.2% increase in same community RevPOR and a 100 basis point increase in same community weighted average occupancy[122]. - RevPAR improved to $4,869, a 5.9% increase from $4,596 in the previous year[129]. - Weighted average occupancy increased by 130 basis points to 78.9% compared to 77.6% in the prior year[129]. - In the Independent Living segment, resident fees rose to $150.4 million, a 6.5% increase from $141.2 million[133]. - The Assisted Living and Memory Care segment reported resident fees of $510.1 million, up 3.3% from $494.0 million[137]. - CCRC segment resident fees increased to $83.3 million, reflecting a 1.7% rise from $81.9 million[142]. - The increase in resident fees in the Assisted Living and Memory Care segment was primarily due to a 4.4% increase in RevPOR and a 120 basis point increase in occupancy[173]. Expenses - Facility operating expenses increased by $10.9 million (2.0%) to $548.3 million for the three months ended September 30, 2024[122]. - Facility operating expense rose to $548.3 million, reflecting a 2.0% increase from $537.4 million in the same period last year[129]. - The overall increase in facility operating expenses was attributed to inflationary pressures and increased marketing costs, partially offset by a decrease in premium labor usage[134]. - Facility operating expenses for the Assisted Living and Memory Care segment rose to $1,122,766, an increase of $23,384 or 2.1% from the prior year[172]. - Facility operating expenses in the CCRCs segment decreased by $10,430 to $204,427, a reduction of 4.9% compared to the previous year[177]. Debt and Liquidity - As of September 30, 2024, the company had $3.7 billion of debt outstanding at a weighted average interest rate of 5.45%[198]. - The company has $100.0 million and $220.0 million of mortgage notes payable maturing in January 2025 and October 2025, respectively, with options to extend for one year[206]. - Total liquidity as of September 30, 2024, was $324,100,000, a decrease of $16,600,000 from $340,700,000 as of December 31, 2023[203]. - The company expects full-year 2024 non-development capital expenditures to be approximately $180.0 million, funded from cash on hand, cash flows from operations, and insurance reimbursements[212]. - The company amended its revolving credit agreement in December 2023, expanding the commitment amount to $100.0 million, maturing in January 2027[213]. - As of September 30, 2024, $58.5 million of letters of credit were outstanding under the $100.0 million secured credit facility, with $39.7 million available[214]. - The company is in compliance with the financial covenants of its debt agreements and long-term lease agreements as of September 30, 2024[225]. Acquisitions - The company entered into agreements to acquire 41 communities (2,789 units) for a total purchase price of $610.0 million, expected to close by year-end 2024[113]. - The acquisition is projected to decrease cash paid for operating and financing leases by approximately $46.6 million for the twelve months ending December 31, 2025[113]. - The company expects to recognize an approximately $33.0 million loss on extinguishment of the financing obligation upon closing of the reacquisition transaction[113].

Core Insights - Brookdale Senior Living (BKD) reported a quarterly loss of $0.22 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.16, marking a 37.50% earnings surprise [1] - The company generated revenues of $784.17 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.18%, but showing an increase from $757.29 million year-over-year [2] - Brookdale's stock has increased by approximately 7.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 21.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $785.4 million, and for the current fiscal year, it is -$0.57 on revenues of $3.13 billion [7] - The estimate revisions trend for Brookdale is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Nursing Homes industry, to which Brookdale belongs, is currently in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------|----------------|----------------------|-------------------------|--------------|-----------------------------------------| | Date of Report (Date of earliest | event | reported) | October 8, | 2024 | | | | | Brookdale | Senior Living Inc. | | | ...

NASHVILLE, Tenn., Nov. 6, 2024 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale" or the "Company") announced results for the quarter ended September 30, 2024. HIGHLIGHTS Third quarter consolidated weighted average occupancy grew 130 basis points over the prior year quarter and 80 basis points sequentially over the second quarter. Same community operating income increased 10.1% over the prior year period, when excluding prior period grant income, marking three years of consecutive quarter ...